Kuala Lumpur - Intel Corp., the world's biggest microchip maker, is set
to announce sweeping job cuts later on Tuesday, the Financial Times said, amid
speculation that up to 10 percent of its staff could go.
Intel is expected to slash its 100,000-strong workforce after second-quarter
net profit fell 56 percent as it cut prices to compete with arch rival Advanced
Micro Devices Inc.
"One person close to the company said employees were due to be briefed on the
situation today when they return from the Labor Day holiday," the Financial
Times said in its Tuesday edition.
The report quoted market estimates that around 10,000 workers could lose
their jobs under a new, global round of layoffs. In Malaysia alone, one
newspaper reported this week, up to 2,000 Intel workers would be offered
voluntary layoffs.
Some Intel Malaysia employees had already received their offers, the Star
newspaper said on Monday. It added that an announcement would be made to
Malaysian staff this week.
An Intel Corp. spokesman declined to comment.
"We are not going to confirm anything," Intel spokesman Chuck Mulloy said by
telephone from the company's headquarters in Santa Clara, California, on Monday
night, US time.
"We have not announced anything yet and when we do, we will put out a press
release."
Intel employs around 10,000 workers in Malaysia, the Star said, adding that
Intel's global plans could see 10,000-20,000 Intel workers leave the company.
Previous estimates by Wall Street analysts have put the size of the cuts
anywhere from a few thousand to 16,000 employees.
"We are in the process of conducting a structural and
efficiency study of our organization," Mulloy said. "We are committed to
announcing the results of that sometime on the third quarter and we are on track
to do that."
